Best Buy: Ex-CEO had ‘relationship’ with employee

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Best Buy: Ex-CEO had ‘relationship’ with employee

By Aaron Smith

NEW YORK (CNNMoney) — Best Buy on Monday said an investigation revealed that former Chief Executive Officer Brian Dunn engaged in an inappropriate relationship with a female co-worker.

Dunn, who stepped down as Best Buy’s CEO in April, “violated company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment,” according to the company.

Best Buy’s board of directors said that Dunn’s relationship “demonstrated extremely poor judgment and a lack of professionalism.” But the company said Dunn’s conduct did not involve “misuse of company resources” or “misuse of aircraft.”

The board also said that Dunn initially denied the allegations, instead of cooperating with the board.

Best Buy said Dunn will receive a severance package totaling more than $6.6 million. The package includes severance pay of $2.85 million, stock grants worth $2.54 million, a “previously earned” $1.14 million bonus and $106,700 in unused vacation pay.

Dunn, for his part, cannot take a job with a Best Buy competitor for three years. Standard company policy is one year for non-compete clauses.

The company also said that its chairman, Richard Schulze, was stepping down, effective June 21. He will be succeeded by Hatim Tyabji, a director since 1998.

Best Buy has had a rough time of it financially, with its bricks-and-mortar retail operations struggling to compete with online retailers. Best Buy announced in March that it would close 50 stores in the U.S.